Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-03-12
THE HITCH IN THE RAILROAD
sDEAl..,,

THE HITCH IN THE RAILROAD
ssDEAL.',
A Belief that Negotiations will be Re.
sumed and the 'sDeal'' CONTAMINATED.
BAD EFFECT ON B. o. NTEREsTs-AR GARRETT
SAID TO HAVE GRANTED EXTENSION OF TIME TO
THE sYNDICATE-hR- GARRETT IN WASHINGTON.
Mr.. Robert Garrett left Baltimore yesterday az
ternoon for washington, coming here, it was said,
| to dine with the German minister Before leaving
his office in Baltimore he gave out for publication
| the following: "The attention OF President Gar
rett was call to the many statements in the news
papers regarding the proposed railway arrange
menta. Mr.. Garrett declined to talk further, but
I said that If arrangements were made they would
commend themselves to the community OF Balti-
| more, and be recognized as protective, wise and
valuable TO all the interests involved"
II was believed by some On the outside that Mr.
Garrett came to Washington to have private
meeting with Mr.. Austin Corbin, the Reading pres
fdent, who Is In the new syndicate. That gentle
| man LETT Philadelphia about noon yesterday for
the south, and was said to have been in Washing
ton last night, but could not be found here.
| Regarding the rumors that the great railroad
| deal has fallen through, New York dispatch to
Baltimore banker said: THE readiness with which
insiders give out the news that everything is over
for the present suggests that when II Is on again
the public will not get quite early information"
| DAMAGING EFFECT ON GARRETT INTERESTS
The Baltimore sun OF to-day says: "a gentleman
who has reason to be largely interested in the out
come OF these negotiations said that II they fell
through the affairs OF Mr. Garrett and his railroad
would be seriously affected. He said: ut would
| be an analogous case TO that OF a business man
/ who had made his affairs known to his creditors
/ for the purpose OF getting time extension OF his
credits. Statements have come out in the oil sous
sion OF this matter that were never so much a; as
| cOnjectured herei In Baltimore. Among them1S the
practical admission that the Baltimore and OhiO'S
costly line TO Philadelphia has been headed on Ell
| fectually from getting to New York. Then there
are stories that the company has floating debt OF
100000 to 1000 OOO and that its telegraph
| lines are undesirable sinking fund These
would be small things for the great railroad cor
pOratiOn TO pull through with; but when 1t Is
known that its president is negotiating for the sale
OF the control Of the whole concern the Incidental
difficulties OF the company are sure TO be magnl-
fed into grave financial difficulties" The story
| that the dropping out OF the Richmond Terminal
parties would break up the ''deaF' 1Ound lew De-
heverS in Baltimore.
Another Baltimore statement OF the situation is
as follows: "The bargain signed by MI. Garrett
with Mr. SulIy made, 1t is said, with the dis
tinct understanding that the Baltimore and OHIO
should be made great trunk line from the begin
ming of its lines In the west ana no ii,S
Terminal and East Tennessee lines, and reaching
New York over the Reading and Jersey Central
tracks All OF these interested corporations were
to be under one harmonious management ana
under control with headquarters in Baltimore,
and Mr.. Robert Garrett was TO be invited TO preside
over the united system since the premature pub
licatiOn OF the great deal the Reading and jersey
Central people have declined TO enter the conblna-
ton, and, so far as an independent trunk nnc 10
New York is concerned. the Sully syndicate are no
better off in that respect than Mr.. Garrett. Ihey
find that upon arriving In Phlladelphla tne uooI IS
locked except as dependent of rival lines. MeSSrS
COrbin, Gould and their friends have secured sucn
a hold on jersey Central that that they will take
advantage OF all new Corners. MI Gould Joins the
new syndicate probably TO rid himself OF the b.
and U. telegraph, his strongest competitor he
has, besides this, another object in view. lie mas
an immense railroad system In the west, ana a
large holding in the Ohio and Mississippi Railroad,
which has fallen from the grasp OF the b. and ..
He fervently desires a New York extension for an
outlet TO the sea, and perhaps, trunk line from
Cincinnati TO the SeabOard would be OF more value
to him than TO the Sully syndicate"
AN APPARENTLY AUTHORITATIVE STATEMENT.
The Baltimore Sun of to-day also makes the fol-
lowing apparently authoritative statement re-
garding the suspension OF negotiations: "The
option with the Sully party to purchase con-
trolling interest OF the stock OF the b. and o. eX-
pired on Thursday, and at the earnest solicitation
OF Mr. Sully it was extended until yesterday. At
the expiration OF that time Mr. Garrett informed
him the proposed deal should be considered OF. 1t
is believed, however, in well-infOrmed financial
circles the deal will be consummated, if not by
the Richmond Terminal syndicate, then by New
York f1nanciers, including MI Gould himself In
the meantime, while the sale is being negotiated,
Mr.. Sully and his friends are trying to convince
the public that the bargain has fallen through.
All this means delay until the sale Is CONSUME
mated. 1t may be said, however, that the final
sale of the road TO New York parties Is certain.
This is the opinion OF the leading officers OF the B.
and o."
Mr. T. Edward Hambleton, OF the Baltimore bank
ing firm OF John A. HambletOn & Co, who has had
confidential relations with Mr.. Robert Garrett,
said last night that he thought the new ar
rangeEents would be a good thing for Baltimore
and the state OF Maryland. He considered the deal
accomplished in effect.
that Mr.. Robert Garrett had given notice to some
holders OF the stock OF the Baltimore and Ohio
railroad company that it will be taken at 175.
The intention may be that all holders have the
option TO come in at that price. Mayor Hodges,
who was asked about the 5000 shares owned by
the city. said the time had not arrived for him TO
talk 1t Is known that the matter Is for the action
of the finance commissioners and the city cOun-
Gil, and while nothing was made public confirming
denying the report that the city stock could be
sold, IL was apparent that the question had been
seriously discussed by persons interested in the
city government
Mr. GARRETT SAID TO HAVE GRANTED AN RxTKN-
SION OF TINE.
An Associated Press dispatch from New York,
which is regarded in Baltimore as correct, is as
follows: 'sThe following statement is made by one
OF the syndicate which is about to acquire the
control OF the B. & o.: President Garrett has
granted an extension Of time in which TO take up
the majority of the STOCK and he will not hold out
technicalitieS either regarding the exact terms
or time. There is option given TO any person,
but written agreement in this city giving GER
tain party the right TO buy the STOCK, and this
party, although not mentioned in the contract, is
| clearly understood by both Mr.. Garrett and the
parties conducting the negotiations. The price is
not more thar 200 per cent but whether it is less
| or not Will not say. Mr. Garrett will be repre-
Sented in the sy Indicate and Mr.. Gould Will also be
represented there. The sale OF the property when
eliminated will bring about a settlement OF the
question OF entering New AOrk city, and the tele-
| graph and express lines will be sold. Mr. Sully
has the same interest before in the syndicate
and all interests working in harmony The
negotiations referring TO the sale to Richmond
Terminal failed account OF the refusal OF the ex-
ecutive committee yesterday TO consent To the
issue Of the additional stock necessary. The stock
will be paid for in cash, which will either be sub
Scribed at once by the syndicate or loaned by the
| First National bank, DreXel, Morgan & Co.. or
Winslow, Lanier & Co., who Will issue negotiable
certificates Tor il. The probability at present
| however. is that the necessary cash Will be sub
Scribed. The formation OF a new company Is not
! contemplated. The securities may ultimately be
sold the Richmond Terminal company, but at a
| higher price than that paid by the syndicate"
A NEW YORK SUMMARY OF THE SITUATION.
| Another New York dispatch says: "The situation
may be summed up follows: Having secured a
| short-term option from MI. Garrett, Mr.. Suly
brought 1t TO this city and opened up the scheme
/ to his associates in the Richmond Terminal. In
| his confidence that the project was practically
/ contaminated he made the thing public. This I'M
auestionaby contributed very largely TO its fail
Ure. The Terminal directors angry at Mr.. SuIy
! for having given the scheme away, and jealous OF
| the prominence he had obtained, sat down ON him
| and his option. They were further induced to do
this II Is stated by the belief that better terms
could be obtained from Mr. Garrett, and that they
| would not lose anything by putting the thing
| aside Tor the present. Indeed, some think that
/ To give the impression that the deal was
4 off for good THUS cOlQtpracffpo the effect